CYPRUS: Power unit out of order for three years costing consumers millions

An Electricity Authority Cyprus production unit which has been out of order for three years is costing consumers close to Euros 2 mln more each month.

Unit 3 at EAC’s Vassiliko power plant has been out since November 2016 when a fire broke out while work was being carried out at the unit’s desulphurisation compartment.

Initially the cost was calculated to be Euros 1.5 mln a month, but due to increases in fuel prices the cost has risen to Euros 1.84 mln a month, Phileleftheros daily reported.

It is estimated that consumers have been burdened with an extra Euros 55 mln over the 32 months the unit has been out of order. It is estimated that consumers paid an extra Euros 10 mln in tariffs.

The Cyprus Energy Regulatory Authority CERA had initially given EAC a warning to reinstate the unit by May 2019.

The difference in costs arises from the fact that this unit burns on cheaper fuel (mazut), while other units that burn more expensive diesel.

The long delay in the reopening of the unit has been criticised as EAC has been slow in investigating the cause of the fire, estimating damage and the recovery schedules, resulting in a significant burden on consumers.

According to EAC records, the damage caused by an accident during welding works in the unit’s desulphurisation compartment, was estimated at Euros 20 mln.

Source: The Financial Mirror